Thinking Beyond Tighter Automobile Fuel Economy

"Congress forced a doubling of passenger car fuel economy from 1974-85, but, according to the National Academy of Sciences, the fuel savings came at a big price: about 2,000 additional traffic deaths per year as cars were downsized, making them less able to protect occupants in collisions. And the rules did little to stimulate the creation of new engines and fuels."

"While Congress should set a strong oil-savings goal, inserting a specific mileage figure in legislation could cause problems. A combination of congestion pricing in cities, alternate fuels, and tougher mileage rules may do more to save oil than relying only on mileage rules. Congress should give the executive the discretion to find the right mix."

"Congress can make a constructive contribution by:

--Requiring that by the end of 2008, regulators set mileage standards for all passenger vehicles through 2015.

--Authorizing regulators to use size-based standards for cars, as they did for light trucks. This encourages new technology rather than downsizing.

--Requiring that mileage rules be set based on benefit-cost calculations, with no special treatment for manufacturers facing financial problems.

--Extending tax credits for fuel-efficient vehicles (such as clean diesels and hybrids), thereby ensuring that consumers remain interested in fuel economy even if fuel prices decline or remain flat."